Danish Prime Minister Mette Frederiksen on Thursday welcomed U.S. President Donald Trump's Greenland pivot, saying the country is prepared to hold talks with Washington on its vaunted "Golden Dome" missile defense plan.

In a statement, Frederiksen said it was "good and natural" that the issue of Arctic security had been discussed between Trump and NATO Secretary General Mark Rutte at the World Economic Forum in Davos, Switzerland.

Trump said on Wednesday that he had secured a "framework" deal on Greenland, including access to mineral rights for the U.S. and its European allies as well as collaboration on the Golden Dome.

The agreement appears to mark something of a climbdown for the U.S. president, who has long advocated for control of the self-governing Danish territory and previously refused to rule out the use of military force.

Denmark's prime minister said she had spoken to NATO's Rutte both before and after his meeting with Trump at Davos, adding that the military alliance is "fully aware" of Copenhagen's position.

"We can negotiate on everything political; security, investments, economy. But we cannot negotiate on our sovereignty. I have been informed that this has not been the case either," Frederiksen said, according to a Google translation.

"The Kingdom of Denmark wishes to continue to engage in a constructive dialogue with allies on how we can strengthen security in the Arctic, including the US's Golden Dome, provided that this is done with respect for our territorial integrity," she added.

Rolled out in May last year and often compared to Israel's "Iron Dome" system, Trump's proposed Golden Dome is a visionary multibillion-dollar initiative designed to shield the U.S. from all missile attacks.

"They're going to be involved in the Golden Dome, and they're going to be involved in mineral rights, and so are we," Trump told CNBC's Joe Kernen in an interview on Wednesday.

When asked how long the deal would last, the president said: "Forever."

In a social media post shortly before speaking to CNBC at the World Economic Forum, Trump said he would no longer be imposing tariffs against eight European countries for opposing his plans to acquire Greenland.

The U.S. president had proposed tariffs of 10% on goods from Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the U.K., from Feb. 1, which would increase to 25% from June 1.

French President Emmanuel Macron called the threats "fundamentally unacceptable," while British Prime Minister Keir Starmer described the move "completely wrong."

"Additional discussions are being held concerning The Golden Dome as it pertains to Greenland. Further information will be made available as discussions progress," Trump said on Truth Social.

Stock markets rose immediately after Trump posted the update, with further gains expected across the globe on Thursday.

Why is Greenland seen as strategically important?

Positioned between the U.S. and Russia, Greenland has long been viewed as an area of high strategic importance, particularly when it comes to Arctic security.

The mineral-rich territory of nearly 57,000 people is in close proximity to emerging Arctic shipping routes, with the rapid melting of ice creating opportunities to substantially reduce Asia-Europe travel time when compared with the Suez Canal.

Greenland also sits astride the so-called GIUK Gap, a naval choke point between Greenland, Iceland and the U.K. that links the Arctic to the Atlantic Ocean.

The largely frozen island is also known for an abundance of untapped raw materials, from oil and gas reserves to critical mineral deposits and a treasure trove of rare earth elements.